10 Principles of Great Sales Leaders
By Keith Rosen, MCC
Congratulations to those companies listed in this year’s Qualified Remodeler Magazine Top 500 Industry Leaders. While the ability to generate such high volume is a tremendous accomplishment, what can we learn from them? What about their selling strategy and the efforts that made their companies so successful?
After all, bigger isn’t always better and more volume doesn’t always equate to more profitability. However, they must be doing something better than the rest to be able to post these numbers.
I’ve had the privilege and fortunate opportunity to talk to some of these leaders of high-volume companies; the owners, CEOs and vice presidents of sales. Many of them were gracious enough to open up the hood of their finely tuned engine so that I can see what makes them perform at optimum efficiency and potential.
Granted, I hit a few interesting bumps during my interviewing process. Several wanted to remain anonymous. Some would only provide limited information in fear of giving away their “trade secrets.” A couple of them even beat on their competition, suggesting they “fudge” their numbers.
However, I’m happy to say that most of the companies I spoke with were more than willing to open up and share their insights with the rest of our remodeling community as to what has put them on the map; not because they post big numbers but what they’ve done differently or better than everyone else and the strategies they’ve used to secure their position as a top player.
Here’s a rare opportunity to look into their world: what they are doing, some pitfalls to avoid, common standards they adhere to and how these innovative leaders think that has driven their success around the area of professional selling.
The following characteristics and strategies are shared by each of these Top Guns what makes them great regardless of volume.
1) Selling Philosophy
The one call close is alive and well.
Each of the companies I spoke with confirmed this. Now, I’m not referring to the old “model home tin man” pitch but more of the consultative approach that still gives the same result (a decision that dramatically shortens their selling cycle which saves time and money) without the manipulation or pressure that’s often associated with this approach to selling.
George Dunning, vice president and co-owner of Homefix Corporation is a strong advocate of this. “Our philosophy is that we’ll take a ‘no’ as graciously as a ‘yes,’ but there’s no better time to decide than when the facts are presented on the table and fresh in the mind of the customer.” With six office locations spanning from northern Virginia to northern New Jersey, they have a solid position at No. 18 with an impressive volume of $30,062,000.
Marc Leen, vice president of Mark Four Enterprises, Inc. based in Fairfield, N.J., also adheres to this philosophy. “It’s more of a consultative sales approach without any high pressure. My salespeople spend the time with our customers (a minimum of one to two hours) uncovering their problems, wants and desires. This systematic approach builds value as they demonstrate our products, share company history and why they would want to do business with us.” With a sales volume of $36,857,978 and a No. 9 ranking, achieving this volume of sales can’t be done in a 10-minute meeting with each customer.
2) Process Driven
Think Ray Kroc, founder of McDonalds who gave new meaning to the word consistency.
Constant monitoring, improvement, refinement and duplication have been the building block of their success. When you have a process and you keep refining your process it rings out waste and inefficiency.
“The most important part of our selling process is the inherent structured nature of it. If you follow our program, you’ll be successful,” says Mark Four’s Marc Leen. “We have found time and time again, that those [salespeople] who stray [from the program] are not going to be successful. It continually gets better as we revamp, revise and refine it in relation to the current conditions of the marketplace.”
3) Value Proposition
These sales leaders realize that to be successful, you need to sell on value not on price.
As such, they are willing to walk away from a sale if it’s not in everyone’s best interest. They know the costs incurred to “taking whatever sale they can get.” Murray Gross, president of U.S. Home Systems, Inc. based in Lewisville, Texas, generated an incredible $87,497,527 in sales making him No. 3 on QR’s list.
When I asked him what makes him different than the rest? “We’re lucky,” he said and then continued, “Of course, our affiliation as an SFI (sell, furnish, install) with Home Depot doesn’t hurt.” With 36 branches, luck is only a small part of Mr. Gross’ success equation. This relationship, combined with an intensive four-week training program for both management and salespeople has given U.S. Home Systems the edge they need that has secured their position as a leader.
Dunning agrees. “We follow a philosophy that we are better off selling a high-end product and walking away from some jobs where the customer is set on spending less, than to have to deal with service issues far into the future. [We found that] most companies do not know the difference between the various window and siding products in the market and follow the old philosophy that “a vinyl window’s a vinyl window!”
4) Cultures of Success
Remodelers that think they’re in the remodeling business are typically the ones who are left behind.
Sure they do great work, but great work is a given. It is a basic assumption that has to be met in order to ensure some level of success. The fact is, the top players know they are really in the business of training, selling and marketing. A quality project or product is simply the end result of their initial efforts.
Jim Franklin, president and COO of Har-Bro based in Signal Hill, Calif., promotes a culture of consistency. “Not only are our technicians trained with all necessary certification as well as being the cream of the crop, but we also only use the best equipment available. They show up at a customer’s location not only being a professional but also looking like a professional.”
Each of Har-bro’s 120 vehicles are identical, proudly displaying their company logo. Franklin is a hands-on guy whose work ethic drives him to be involved and an active owner, sending a clear and powerful message to his team which supports the culture he’s created. “We’re constantly working on our process and developing a great working environment of people who want to be here,” he continues. “It’s a delicate balance of being hands-on, delegating and holding key people accountable while allowing them the flexibly to make their own decisions.” Keeping his people involved in the day to day decisions that drive the growth of his organization has clearly paid off. With annual sales of $46 million Har-Bro is holding strong at Number 6.
At Mark Four Enterprises, Mr. Leen builds a culture of independence and entrepreneurship amongst his sales team. “While always a struggle, one of the most important things we’ve done to develop and motivate our salespeople is that we give them a unique opportunity to practically run their own business with virtually no risk. We provide them with opportunities each day to visit with homeowners who are interested in buying a great product.” Mr. Leen “sets them up in business” and provides additional ways for them to bring in more sales through self-generated leads, canvassed leads and referrals.
Additionally, his sales staff needs to get in touch and visit each jobsite with an emphasis to seek out new selling opportunities. “It’s a great way to build a stronger relationship with our customers. We’ve found that the more successful the salesperson, the more often they are doing it.”
Homefix raises the bar of accountability to another level. “Our sales reps are responsible for visiting every jobsite and must collect five referrals or they do not receive their paycheck on Friday.”
5) Unique Offering
What do you offer to stand out above the rest?
Saying you offer a great product or service isn’t enough. What do you do that give you the edge? Chris Cardillo is one of the 3 partners at Castle, “The Window People”, Inc., based in Mt. Laurel, New Jersey. When asked, “What do you feel you do better or different than everyone else?” Mr. Cardillo had a strong response; “Customer service and installation. We guarantee our products forever; no questions asked. It’s a true lifetime warranty on all parts and labor.” With an impressive $37,592,578 you can’t argue that it works.
HomeFix’s George Dunning also attests to this commitment to over-delivering on value. In an industry plagued by poor workmanship, Homefix strives for 100 percent customer satisfaction through professional quality service. “We warrantee our products as well as our labor for a lifetime. This is a warranty that bypasses the manufacturer and comes directly from us.”
6) Training and Support
You can’t learn to play great golf in a day.
Sure, you may be able to learn the basics, but those basics then need to be practiced and refined if you want to improve your game. The same rules hold true for professional selling. HomeFix’s Dunning states, “Structured training must precede a structured sales process.” These sales leaders are training their salespeople anywhere from three weeks to four months before they even get a chance to go out and sell on their own.
Gross has his salespeople go through an initial training of two weeks or more. Then another four weeks they ride along with another seasoned salesperson before they are let out on their own. They train using a planned presentation.
Starting with a detailed needs analysis, his salespeople take the time to find out what each customer’s unique problems and objectives are before offering the best solution. Only then do they uncover their needs do the salespeople demonstrate how their products can satisfy them.
Over time, Gross has revised his training process and have successfully been able to shorten their presentation so that the salespeople are, “Spending less time in what was used to be called “the pitch” and more time in trying to find what customers are really looking for, respecting how they like to buy. And this is done through better use of questions.
To ensure they are giving their salespeople the support they need to maximize each selling opportunity, Cardillo’s managers at Castle, “The Window People”, Inc. make certain that managers are available 24 hours a day anytime a salesperson needs help in the home.
Leen added, “We focus heavily on our people and the process they use to sell, not just our customers. The reason why our salespeople are successful in our organization is because they follow our policies, programs and systems. Sure, some newly recruited salespeople come in and say, “I can do it using my approach.” If they were successful using their approach and what they were doing, then they wouldn’t be working with us.
The ones who are successful follow our system that’s delivered and practiced throughout our training, and our system works. Shortcuts lead to failure.”
7) Top Talent
The product is the salesperson.
After all, what are your customers really buying? Bob Schneider, president of Patio Enclosures, Inc. based in Macedonia, Ohio, maintains a solid position at No. 2 on QR’s list with a whopping $103,561,841 in sales. “Ninety percent is the salesperson not the product, nor the pitch book or a piece of paper,” says Schneider. “That [the product] comes after.”
Chris Cardillo takes the following approach to securing top talent. “As far as our employees, we offer the best [qualified] leads, hire the best people and pay the most.”
Jim Franklin of Har-Bro believes strongly that he has the best talent in industry. “The quality of people we have is priceless. I’m fortunate and blessed to work for them. With a solid core of branch managers, Franklin states, “We wouldn’t have the success we’ve experienced if it wasn’t for my people and I appreciate them each day.”
8) Lifelong Learning
At Homefix, Dunning believes that learning doesn’t stop once the initial training is over.
Most of the top producers would agree. “Upon passing the ‘final’ exam, the rep is ready to run and starts earning,” says Dunning. “Each and every day we hold sales meetings at every location to follow up on their performance, which also includes role playing and background training on things not necessary for their first lead but required for success in the long haul.” Where the industry average closing percentage is 21 percent, Homefix is running at close to 50 percent at some locations year to date.
Bob Schneider of Patio Enclosures, Inc. is constantly holding meetings – observing and gauging feedback from both his team and his customers. Marc Leen is another advocate of continued education. “No one is beyond training. It’s getting them [salespeople] to embrace getting better on a daily basis, honing in on the aspects of what they are doing that’s working and what they’re not doing that they need to do in order to get to the next level of achievement.”
Leen utilizes a variety of methods to continually develop his people including video monitoring and role playing. This is done during their sales meetings, which are not only required but mandatory. These meetings are used as a forum for constant training, retraining and reviewing daily results.
9) Technology
“Those companies that turn their back on the Internet will be left in our dust,” says Dunning.
Homefix pulls leads from Internet sources as well as search engines for our own site. “This is the future. Most people do not want to be called on the phone but would rather be able to use e-mail as a form of communication. It’s less intrusive and bothersome,” he believes.
10) Execution
How many books, ideas and resources are in your office collecting dust?
The fact is, there is no magic bullet, no “trade secrets,” and no earth-shattering epiphanies.
While we can certainly benefit from the valuable ideas and strategies that these leaders have shared, the one core characteristic that has made them an “A Player” and well entrenched in the industry is this: taking action, sticking to the basics and following through. It’s their drive for consistency, not only in action but in their approach and philosophy. So, kudos to these leaders.
One of my favorite articles appeared in Fortune magazine several years ago. The cover story was titled, “Why CEOs Fail.” It wasn’t due to not having the right people, product, strategy, sales process, marketing campaign or service. It came down to execution, implementation and follow-through.
So, what are you going to do with this valuable information shared directly by the sales leaders in remodeling? Here’s a riddle. There are five frogs sitting on a log. One decides to jump off. How many are left? Five; because there’s a difference between deciding, knowing what to do and then doing it.
While success leaves footprints, so does failure. Maybe execution really is the magic bullet. Choose your path.